OPEC powers alarmed by oil price, but coy on policy

SINGAPORE (Reuters) – Top Gulf OPEC officials expressed alarm on Wednesday at oil prices threatening to top $100, but reiterated that markets were well supplied and steered clear of saying whether OPEC would raise output next week.

The Organization of the Petroleum Exporting Countries (OPEC) is under mounting pressure from consumer nations to raise production again to stop oil prices from vaulting above $100 a barrel, which would add strain to a vulnerable world economy.


But with a week to go before the group’s December 5 meeting in Abu Dhabi, Saudi Oil Minister Ali al-Naimi, the group’s most influential minister, and OPEC President Mohammed bin Dhaen al-Hamli stuck with familiar refrains about the healthy state of oil markets, saying prices were beyond its control.

“We observe with great concern the recent escalation of oil prices. But we believe that the world market is well supplied and petroleum inventories are comfortable,” Naimi said in a speech at an energy conference in Singapore.

Asked about next week’s meeting Naimi said: “We need to look at the data, at the information, and then we will decide.”

Both Naimi and Hamli said they were not aware of any specific output proposals, dismissing news reports that Gulf ministers were considering an increase of up to 750,000 barrels per day (bpd).

Reuters